Post by kcrane on Apr 18, 2019 13:32:48 GMT
I've sold as much as I can and the cash is out, but still have £12k in of which £7k is listed for sale and has been for over 30 days. The other £5k I can't sell will I suspect will become bad debt.
I did have some reasonable years with FC early on, but this year (taking on anything to get the listing away?) has been poor.
Question I have for myself is, if FC is so bad, to what extent does that reflect what to expect from Zopa and RS? Are their target markets and lending criteria sufficiently different to avoid the same fate?
To answer the question from yourself to.err.. yourself - they're likely to be partially correlated, but obviously have different lending criteria and perform types of lending (e.g. RS does property too) so somewhat difficult to specify without the reams of data they're no longer willing to give us.
Welcome btw
Thank you for the welcome!
Last year (17/18) I had £9k of interest and £7k of debt, so really I should have seen the writing on the wall.
In March this year, before the year-end, I had a look at my tax statement and it was again £9k interest versus £7k debt, so I requested to sell out completely. For some reason it sold everything but £14k.
I extracted the cash and got around to re-listing the £14k after the tax year end, only to find my total in FC was now £12k. I re-ran the tax statement and now it read £9k interest and £9k bad debt. So in the couple of weeks in which I asked for all of my loans to be sold I had jumped from £7k bad debt in the year to £9k bad debt, another £2k down.
Of the £12k I had left, the maximum it would let me sell was £7k, which I listed 30 days ago, no luck so far.
The final £5k I am assuming will be in some way impaired and likely to be bad, but once the £7k goes I will try to list it again.
If it is bad, I'd have earned £9k in interest and lost £14k to bad debt (£9k plus £5k). Give or take that would be a 4.5% loss on my investment over 12 months.